PC Repair
Financial Plan
Forecast
Key assumptions
PC Repair’s customer base would fluctuate if there was a recess in the economy or other extenuating circumstances that pertain directly to consumer or industry behavior. However, given the steady increase in computer users despite the recent recession, we assume that sales forecasts are unlikely to be dramatically altered by economic events. The table below shows some of our other assumptions
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of funds
Our Startup Funds are:
- Legal $650
- Website $350
- Business Cards $100
- Insurance $150
- Uniforms $300
- CPA $250
- Advertisement $1,000
TOTAL START-UP EXPENSES $3,000
Sources of Funds
Jack Hacker will put in $23,000 to start; and will take out a $20,000 loan.
Statements
Projected Profit and Loss
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | $441,000 | $457,800 | $483,000 |
| Direct Costs | $200,466 | $208,124 | $219,674 |
| Gross Margin | $240,534 | $249,676 | $263,326 |
| Gross Margin % | 55% | 55% | 55% |
| Operating Expenses | |||
| Salaries & Wages | $139,200 | $171,984 | $175,423 |
| Employee Related Expenses | $27,840 | $34,397 | $35,084 |
| Rent | $38,400 | $38,400 | $38,400 |
| Marketing | $8,820 | $9,156 | $9,660 |
| Insurance | $2,400 | $2,400 | $2,400 |
| Utilities | $3,000 | $3,000 | $3,000 |
| Amortization of Other Current Assets | $0 | $0 | $0 |
| Total Operating Expenses | $219,660 | $259,337 | $263,967 |
| Operating Income | $20,874 | ($9,661) | ($641) |
| Interest Incurred | $701 | $100 | |
| Depreciation and Amortization | |||
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $3,026 | ($1,464) | ($96) |
| Total Expenses | $423,853 | $466,097 | $483,545 |
| Net Profit | $17,147 | ($8,297) | ($545) |
| Net Profit/Sales | 4% | (2%) | 0% |
Projected Balance Sheet
| Starting Balances | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Cash | $29,000 | $67,322 | $47,076 | $49,377 |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | $1,000 | $1,000 | $1,000 | $1,000 |
| Other Current Assets | $10,000 | $10,000 | $10,000 | $10,000 |
| Total Current Assets | $40,000 | $78,322 | $58,076 | $60,377 |
| Long-Term Assets | ||||
| Accumulated Depreciation | ||||
| Total Long-Term Assets | ||||
| Total Assets | $40,000 | $78,322 | $58,076 | $60,377 |
| Accounts Payable | $24,490 | $23,822 | $24,923 | |
| Income Taxes Payable | $2,170 | ($1,464) | ($96) | |
| Sales Taxes Payable | $7,686 | $6,867 | $7,245 | |
| Short-Term Debt | $13,171 | $6,829 | ||
| Prepaid Revenue | ||||
| Total Current Liabilities | $13,171 | $41,175 | $29,225 | $32,072 |
| Long-Term Debt | $6,829 | $0 | $0 | $0 |
| Long-Term Liabilities | $6,829 | $0 | $0 | $0 |
| Total Liabilities | $20,000 | $41,175 | $29,225 | $32,072 |
| Paid-In Capital | $23,000 | $23,000 | $23,000 | $23,000 |
| Retained Earnings | ($3,000) | ($3,000) | $14,147 | $5,850 |
| Earnings | $17,147 | ($8,297) | ($546) | |
| Total Owner’s Equity | $20,000 | $37,147 | $28,850 | $28,305 |
| Total Liabilities & Equity | $40,000 | $78,322 | $58,076 | $60,377 |
Projected Cash Flow Statement
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $17,147 | ($8,297) | ($545) |
| Depreciation & Amortization | $0 | $0 | $0 |
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | $0 | $0 | $0 |
| Change in Accounts Payable | $24,490 | ($668) | $1,101 |
| Change in Income Tax Payable | $2,170 | ($3,634) | $1,368 |
| Change in Sales Tax Payable | $7,686 | ($819) | $378 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $51,494 | ($13,418) | $2,302 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | ($6,342) | ($6,829) | |
| Change in Long-Term Debt | ($6,829) | $0 | $0 |
| Net Cash from Financing | ($13,171) | ($6,829) | $0 |
| Cash at Beginning of Period | $29,000 | $67,322 | $47,076 |
| Net Change in Cash | $38,322 | ($20,247) | $2,302 |
| Cash at End of Period | $67,322 | $47,076 | $49,377 |
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